Nonprofit Firms in a Linear City with Nonnegative Profits

Kamal Lamsal and Christopher Hoag
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Kamal Lamsal: Emporia State University
Christopher Hoag: Trinity College

Journal of Economic Insight, 2016, vol. 42, issue 2, 61-72

Abstract: In a linear city model of firm location, firms have nonprofit objective functions that consist of a linear combination of maximizing profits and producing output, although firms are constrained to earn nonnegative profits. If firms place sufficient weight on maximizing profits, then firms locate at the ends of the linear city, just as in the firm location game under profit maximization. If firms place sufficient weight on producing output, then firms will locate at the median of the linear city, just as in the candidate voting game.

JEL-codes: L13 L31 (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:mve:journl:v:42:y:2016:i:2:p:61-72

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